How Interactive & Shoppable Content is Reshaping Retail Advertising

Whether you are a small online shop or a large brand, it is always in your interest to find new and exciting ways to engage with your audience. So far, we've had trends like print catalogs, TV infomercials, and billboard advertising. While the heyday of this type of content is long gone, it does illustrate to us that how customers perceive advertising is constantly shifting. Now is the time of interactive and shoppable content in retail media. So, let's take a more in-depth look at how this ongoing trend is reshaping retail advertising.

The effects of interactive and shoppable content in retail

To properly understand how interactive and shoppable content is reshaping retail advertising, we will first cover its effects. Then, we will dig deeper into the psychology behind content interactivity and try to explain what causes it to be so effective. By the end of the article, you should have a fairly decent idea of how dominant interactive and shoppable content is and why its success is by no means an accident.

Seamless shopping experiences

The whole idea behind shippable and interactive content in retail is to provide a seamless shopping experience. While before, you had to leave the content you were viewing (whether to a website or an online store) in order to make the purchase, this is no longer the case. Shoppable content integrates purchasing directly into the content itself, reducing friction in the buyer's journey. Consumers can now shop directly from social media posts, videos, or even live streams without being redirected to external websites.

Social commerce integration

By certain estimates, people on average spend 2 and a half hours every day on social media. Recognizing this, retailers have looked for ways to sell their products without having to guide customers away from social media. Well, the aforementioned samlessness of interactive and shoppable content has provided a solution. Brands can now turn their social media presence into a storefront, allowing users to discover and purchase products without leaving the app. Facebook Shops, Instagram Shops, and Pinterest pins are all great examples of how social media scrolling has naturally evolved into a shopping experience.

Data-driven insights

The fact that users interact directly with content has given retailers a unique leg up. While before, they had to find clever ways to collect customer data, now it can be done in a fairly straightforward manner. Shoppable content provides brands with valuable data on consumer behavior, preferences, and purchasing patterns. This data can be used to refine marketing strategies, optimize ad spending, and create better-targeted campaigns. Furthermore, it can help the brand develop a better rapport with their audience and improve both brand and customer loyalty in the long run.

Increased conversion rates

By reducing the steps between discovery and purchase, shoppable content streamlines the buying process. As an effect, this has led to noticeably higher conversion rates. Here are a couple of examples:‍

• ‍Facebook - Facebook Shops deliver 1.6x higher conversion rates** compared to traditional e-commerce sites. This is based on Facebook’s internal data and case studies on Facebook Shops' performance.‍
• Shopify - Shoppable Instagram Posts increase conversion rates by up to 1,416% compared to traditional social media posts.‍
• AR Content - Products with AR experiences see 94% higher conversion rates.‍
• Pinterest - Shoppable Pins drive 2x higher conversion rates compared to standard pins.

Interactive elements also build trust and confidence in purchasing decisions, as consumers can “try before they buy” or get personalized recommendations.

Storytelling meets commerce

The ability to seamlessly weave shoppable and interactive into user experience has somewhat changed the nature of marketing. While before, you had to focus your content around the desired marketing message, now you simply need to tell an interesting story.

Brands are using interactive and shoppable content to tell stories that resonate with their audience while seamlessly integrating product offerings. This approach makes advertising feel less transactional and more experiential. Instead of feeling that they are being sold something, the customers are instead experiencing a story, with the option to make a purchase along the way.

Rise of live shopping

Live shopping has also become somewhat of a trend, especially in the past couple of years. Through it, brands combine entertainment with commerce. This essentially allows them to showcase products in real time while engaging with viewers through comments and questions. This format is particularly popular in markets like China and is gaining traction globally.

Cross-channel integration

While cross-channel promotion is by no means a novel idea, it has come to a surprising spotlight with interactive and shippable content. Namely, in order for this type of content to properly function, it needs to be integrated across multiple channels, from in-store experience to social media to email marketing, websites, and online stores. When done properly, this creates a cohesive omnichannel experience that meets consumers wherever they are. This cross-channel integration is slowly but surely becoming the norm, and essentially all retail brands will have to work on it.

Understanding the psychology

Now that we have a basic understanding of the effects of interactive and shoppable content, let's take a closer look at the psychology behind it.

As we mentioned before, the success of interactive and shoppable content is by no means an accident. The psychological aspects of it are deeply rooted in how humans process information, make decisions, and engage with brands. These types of content tap into cognitive and emotional mechanisms that influence how and why we make online purchases.

Engagement through interactivity

Interactive content (e.g., quizzes, AR try-ons, polls) leverages the psychological principle of active participation. The idea is that when consumers actively engage with content, they are more likely to retain information and form a stronger connection with the brand. This is in contrast with passive participation, where the engagement level is fairly low.

Interactive elements require mental effort, which increases attention and memory retention. The more mental effort we commit to something, the more likely we are to engage with it and retain whatever information is important for the engagement. Now, this, of course, doesn't mean that a brand should make their so complicated that it requires too much mental effort. What you are looking for is the golden middle where the customer is engaged with the content but doesn't have to force themselves to engage with it. This is often referred to as the flow state, where users lose track of time and become fully engaged.

Reduced decision fatigue

Another important psychological phenomenon that shoppable content masterfully avoids is decision fatigue Namely, shoppable content simplifies the purchasing process by integrating product information and checkout options directly into the content. This reduces the decision fatigue, a psychological phenomenon where too many choices overwhelm consumers and lead to inaction. The way this is set up is through choice architecture in shoppable content. By curating options and guiding users through the decision-making process, shoppable content makes choices feel manageable. This also minimizes the steps between discovery and purchase and reduces mental effort, making it easier for consumers to act.

Personalization

Interactive content often incorporates personalization, such as product recommendations based on user input. This taps into the self-reference effect, where information related to oneself is more likely to be remembered and valued. After all, we all tend to resonate better with information that is important to us and that actually relates to our lives. Therefore, this phenomenon should not be that much of a surprise.

The idea here is that people are naturally drawn to things that reflect their preferences, needs, or identity. Not only will they these things better in a factual sence, but they will also resonate more with a store that recomends them. Personalized recommendations feel tailored and thoughtful, fostering a sense of connection with the brand.

Social Proof and FOMO (Fear of Missing Out)

Live shopping is a fairly interesting phenomenon, where customers can share their impressions and also make use of temporary discounts (brought by the streamer hosting the live event). Well, here we have two elements to consider, which are social proof (e.g., user reviews, live shopping events) and FOMO (fear of missing out). Put together, these psychological triggers encourage consumers to act quickly to avoid missing out on popular or trending products.

If we wish to dig deeper, we might even attribute this to group behaviour. People tend to follow the actions of others, especially in uncertain situations. Meanwhile, limited-time offers or low-stock alerts create urgency, prompting immediate action. This combination creates excitement in shoppers to make use of the live shopping event, thus increasing the bottom line for the retailer.

Gamification

Gamification is a big driving force in many marketing and retail practices. After all, people who made video games have worked long and hard on trying to figure out how to engage people. So, it only makes sense that retailers would use that knowledge to their benefit.

Interactive content often incorporates gamified elements, such as spin-the-wheel discounts or progress bars. These tap into the brain’s reward system, releasing dopamine and creating a sense of achievement. Another often-used brain mechanism is operant conditioning. Namely, rewards (e.g., discounts, badges) reinforce positive behavior, encouraging repeat engagement. So, if you want your customers to continue interacting with your brand, you simply need to reward them.

Reduced risk perception

Every purchase presents a risk. After buying a product, the customer may not like it, it may not fit in the rest of their life, or they may feel that they've made a silly impulse purchase. To combat this, retailers need to have a decent return policy for their items. However, they should also look to implement interactive content to showcase their items better. Things like AR try-ons or virtual demos help consumers visualize how a product will fit into their lives, reducing the perceived risk of purchasing. This builds trust and confidence in the brand. It also gives consumers a sense of control over their decisions, increasing satisfaction.

Emotional storytelling

If you've watched the TV Show Mad Men, you've likely noticed how much emphasis marketing agents put on emotions and telling a story. Well, if Don Draper had access to shoppable and interactive content, he would likely have flipped. Shoppable content often incorporates storytelling, which resonates emotionally with consumers. Stories activate the brain’s mirror neurons, allowing consumers to empathize with the narrative and feel connected to the brand.

Consumers become "transported" into the story, making the brand experience more immersive and memorable. Stories create emotional associations with products, making them more appealing. This makes it far more natural to recommend a product through shoppable content than janking them out of their experience through an ad.

Instant gratification

It shouldn't come as much of a suprise that the faster our techology got, the shorter our patinets became. While before, we were quite willing to put up with waiting, modern customers expect everything right now. Well, this is a big reason for the success of shoppable content. It caters to the human desire for instant gratification by allowing consumers to purchase products immediately after discovering them. This taps into the brain’s preference for immediate rewards over delayed ones. The ease of shoppable content reduces barriers to impulse purchases.

Curiosity and exploration

Lastly, it's important to recognize that interactive content (especially AR and VR) is fairly new. This is why it often sparks curiosity, encouraging users to explore more products or features. This taps into the brain’s natural desire for novelty and discovery. Even with your long-term customers, discovering new products or features feels rewarding, increasing brand loyalty.

Final thoughts

As of writing this article, investing in interactive and shoppable content is arguably the best course of action for an aspiring brand. Regardless of who your audience is, you are bound to find better engagement if you employ this new type of content. Especially if you understand the psychological background behind it and properly weave your content into your brand stories. This, as you can imagine, will require some exploration and experimentation. We can reassure you that StorifyMe is here to help you every step of the way. Good luck!